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    Exam 12: An Alternative View of Risk and Return: the Arbitrage Pricing Theory
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    In a Multifactor Model,explain What a Factor Represents and the Role
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In a Multifactor Model,explain What a Factor Represents and the Role

Question 3

Question 3

Essay

In a multifactor model,explain what a factor represents and the role that beta plays in relation to factors.How do factors and betas affect the actual return?

Correct Answer:

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